Skip to Main Navigation

Bank regulation and supervision around the world : a crisis update (English)

This paper presents the latest update of the World Bank Bank Regulation and Supervision Survey, and explores two questions. First, were there significant differences in regulation and supervision between crisis and non-crisis countries? Second, what aspects of regulation and supervision changed significantly during the crisis period? The paper finds significant differences between crisis and non-crisis countries in several aspects of regulation and supervision. In particular, crisis countries (a) had less stringent definitions of capital and lower actual capital ratios, (b) faced fewer restrictions on non-bank activities, (c) were less strict in the regulatory treatment of bad loans and loan losses, and (d) had weaker incentives for the private sector to monitor banks' risks. Survey results also suggest that the overall regulatory response to the crisis has been slow, and there is room to improve regulation and supervision, as well as private incentives to monitor risk-taking. Specifically, comparing regulatory and supervisory practices before and after the global crisis, the paper finds relatively few changes: capital ratios increased (primarily among non-crisis countries), deposit insurance schemes became more generous, and some reforms were introduced in the area of bank governance and bank resolution.


  • Author

    Cihak, Martin Demirguc-Kunt, Asli Peria, Maria Soledad Martinez Mohseni-Cheraghlou, Amin

  • Document Date


  • Document Type

    Policy Research Working Paper

  • Report Number


  • Volume No


  • Total Volume(s)


  • Country


  • Region

    The World Region,

  • Disclosure Date


  • Disclosure Status


  • Doc Name

    Bank regulation and supervision around the world : a crisis update

  • Keywords

    Finance & Private Sector Development;crisis country;global financial crisis;bank regulation and supervision;explicit deposit insurance scheme;restrictions on bank activity;government guarantee of deposit;resolution of banking crisis;coverage of deposit insurance;government ownership of bank;advanced economy;systemic banking crisis;tier 1 capital;list of countries;Capital Adequacy Ratio;deposit insurance agency;information disclosure requirement;capital ratio;deposit protection system;expansion of coverage;bank insolvency framework;foreign currency deposit;Chief Risk Officer;regulation of bank;area of regulation;issuance of bond;banking system asset;evidence of convergence;increase in capital;law and economics;cambridge university press;holding company;commercial bank;Real estate;supervisory framework;foreign bank;foreign entity;bank resolution;risk base;supervisory agency;capital requirement;survey results;minimum capital;supervisory practice;entry requirement;management fee;loan loss;bank governance;borderline cases;Voting shares;asset diversification;private incentives;domestic bank;asset classification;regulatory response;rejection rate;advanced country;securities activity;bank debt;bank license;entry restriction;financial subsidiaries;minimum level;insurance activity;regulatory requirement;regulatory change;legal authority;insurance protection;consolidated account;regulatory rule;executive compensation;agency head;financial conglomerate;consumer protection;capital regulation;Banking Supervision;internal assessment;financial regulation;income statement;national regulatory;government security;supervisory approach;



Official version of document (may contain signatures, etc)

  • Official PDF
  • TXT*
  • Total Downloads** :
  • Download Stats
  • *The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.


Cihak, Martin Demirguc-Kunt, Asli Peria, Maria Soledad Martinez Mohseni-Cheraghlou, Amin

Bank regulation and supervision around the world : a crisis update (English). Policy Research working paper ; no. WPS 6286 Washington, D.C. : World Bank Group.